COLQUIPUCRO, PERU

The Colquipucro project consists of 46 claims totaling 10,234.85 hectares in the Department of Pasco and Province of Daniel Alcides Carrion and is approximately 190km NE of Lima and 65km NW of Cerro de Pasco.

The Colquipucro mining district lies some 40 kilometers north west of the famed Cerro de Pasco and Colquijirca Pb-Zn-Cu mines, and 35 km east of the Raura mine, a Cu-Pb-Zn-Ag skarn deposit mined since 1958. The project is 25km SW of Buenaventura´s high grade 150 million oz Uchuccahacua silver mine.
A first field visit identified numerous gossanous mantos and veins over an area of 20 sq.km within a sequence of limestone, shale and carbonaceous sandstone. Two dominant vein orientations were identified with widths up to 1 m, containing galena, sphalerite and pyrite as the principal sulphide minerals.  Mapping identified propylitic alteration associated with intrusives northeast of the vein and gossanous occurrences, suggesting a mineralizing intrusive source may exist nearby. 

Reconnaissance sampling of vein and mantos yielded strong base metal and silver anomalism with lesser gold values. A 1m by 2m panel sample of oxidized and pyritic rock yielded 64 g/t Ag, 0.7 % Pb and 0.4% Zn; a 0.5 m wide channel sample from a quartz vein returned 460 g/t Ag, 12.3% Pb, 1.9% Zn and 0.2 g/t Au. Two grab samples taken from old mine dumps ran 500 g/t Ag each, 1.8% and 1% Pb, 0.8% and 0.1 % Zn, respectively. From 41 rock chip and soil samples, Ag values ranged from trace to 500 g/t, Au from trace to 0.2 g/t, Pb from trace to 12.3%, and Zn from trace to 1.9%.

Crews returned to the project to sample an existing adit from previous mining. Numerous east-west trending and steeply northerly dipping fault/breccia zones crosscut the adit at fairly regular intevals along its length. The host rock is a banded sandstone unit of the Chimu Formation which has been extensively fractured between the adjacent fault zones, resulting in a series of parallel, closely-spaced fractures resembling a stockwork texture. Surface workings along these faults have been traced over approximately 500m in strike length to at least 300m north-south.

A total of 127 samples were taken over a 245m length along the adit at regular 2m intervals, except where either narrow high grade shear zones or pillars occur at old workings. It appears that the mineralizing event that produced the high grade silver mineralization along the fault zones also produced mineralization over large widths in the intervening host rock.  Anomalous lead and zinc values occur with the high grade silver. These faults and fractures are filled with limonites derived from sulphides and no associated vein material, like quartz, carbonates or barite, are observed. A summary of significant intercepts, using a 30 g/t Ag cut-off, is shown below.

A program of surface trench sampling, using a diamond saw to cut channels in the bedrock, was then begun, with the sample lines being up to 300m long and spaced 100m apart. The first channel was cut immediately, and up to 100m, above the existing adit. A total of 70 samples were taken from the channel over a 305m length at regular 5m intervals, except where old workings or back fill occurred. A summary of significant intercepts, using a 30 g/t Ag cut-off, is shown below. 

These results of intervals of mineralization at surface above the adit, added another dimension to the project and further supported the Company’s belief that there is a large silver system at Colquipucro. 

Due to these very encouraging results, the Company staked an additional six claims around the existing property. Further exploration will be conducted on the new ground in conjunction with the detailed sampling program being performed on the main target area.

Another zone of interest was discovered approximately 200m northeast of the area being explored.  This area contains limonite and manganese “clinker” derived from what appears to have been fairly massive sulphides over widths ranging from 30m to 80m.  The Company’s Peruvian geological staff indicate that this type of gossan is similar to those found in and around some of the deposits of the famous Cerro de Pasco mining camp located to the southeast. 

Geophysics

An induced polarization (“IP”) geophysical survey was completed early in 2007 consisting of 10 lines totaling 8 km in length.  The inversion model of the IP data produced a zone of high chargeabilities from surface to a depth of greater than 150m over an area roughly 400m east-west by 700m north-south.  Some of the chargeabilitity conductors correlate with the strongly mineralized zones in the 3870 level adit while others can be related to mineralized zones found in the surface trenches.

Zone 1 Drill Program

A fifteen hole (2,670 metre) diamond drill program commenced on May 15, 2007, and after a change of drilling contractors, was completed early November 2007. All but one drill hole intersected significant silver values with silver mineralization occurring over substantial widths in many of the drill holes.

Drilling has identified mineralization that extends across an east-west strike of about 200 meters, a width up to 500 meters north-south and to a depth ranging from 100 meters to 200 meters.  The extensive mineralization intersected in CDD11 (44 metres grading 95 g/t silver from 0 metres, 16 metres grading 91 g/t silver from 94 metres and  8 metres grading 551 g/t silver from 138 metres) and CDD13 (60 metres grading 135 g/t silver from 28 metres) is particularly significant as these intercepts are located 60 metres down dip from similar grade and thickness mineralization that was discovered in CDD4 (28 metres grading 105g/t silver from 10 metres and 10 metres grading 625g/t silver from 118 metres) and CDD6 (26 metres grading 93g/t silver from 36 metres).

Fracture-controlled silver mineralization is hosted in the sandstone bearing Chimu Formation.  The underlying Pucara Group limestone, which hosts base metal mineralization, provides potential for discovering high grade lead and zinc mineralization.  Best results from the Pucara limestone included 12 metres grading 4.4% zinc from 160 metres in drill hole CDD13, which was terminated prematurely in mineralization due to poor ground conditions and 24 metres grading 2.2% zinc from 158 metres in drill hole CDD15. 

Significant silver assays from the Phase 1 drill program (CDD1 to CDD15) at Colquipucro using a 30 g/t  cut-off.

Significant base metals assays from drillholes CDD3-CDD15 using a cut-off of 0.1% for both lead and zinc.

All diamond drilling has been performed using either HQ or NQ diameter drill rods.  All core was logged and split at 2 metre intervals on site under the supervision of Tinka geologists.  Samples were transported by company staff to Plenge Laboratories in Lima, Peru for assay by multi-acid digestion methods and AA finish.  Analytical standards and blanks, as per industry standards, were routinely introduced in the sample suites sent to the laboratory.  It is not yet possible to make a conclusive statement defining true widths in the reported down-hole intercepts.

Surface Exploration

The Company has identified new areas of surface mineralization at Colquipucro.  Two of the new areas, called Colquisur and Ayawilca, lie 1km SE of and from 1.5km and 2km SSE, respectively, from the recently drilled Zone 1 area.  A total of 384 soil and rock chip samples were collected from the new areas on a grid covering both areas measuring roughly 1,500 metres by 1,900 metres.  Results returned values ranging from trace to 85 g/t silver, trace to 0.39% lead and trace to 4.9% zinc.  These geochemically anomalous areas are still open to the east, but geological mapping and soil sampling suggest that the mineralized areas are faulted-off along the western edge of the grid.

The Ayawilca zone is underlain mostly by sandstones and siltstones containing finely disseminated pyrite throughout. Other sulphide minerals have not yet been identified in the matrix of these rocks, but the highly anomalous soil sample results suggest they are there (galena, sphalerite).  It is believed that this sequence of east-west structures could be a similar setting to the Zone 1 area just drilled, where faults served as conduits for reprecipitating and enriching the mineralization both along the faults and in intervening fractures.

The Colquisur zone sits in the valley immediately south of Zone 1.  There is extensive overburden cover, but preliminary mapping and sampling indicates that it is underlain mostly by the Pucara limestone, host to the lead and zinc mineralization encountered in the deeper parts of some holes at Zone 1.

A third area, know as Colquicocha, of surface mineralization was discovered during the last quarter.  This area lies 2 km SE of the recently identified Ayawilca zone and approximately 3.75 km SE of Zone 1 that was drilled during 2007.

At Colquicocha, nine channel samples ranging from 1 metre to 3 metres width, were collected from surface outcrops and old workings. Results returned values ranging from trace to 222 g/t silver, trace to 9.10% lead and trace to 8.0% zinc. Two contiguous samples from one underground working, taken perpendicular to the bedding in the sandstone, averaged 136 g/t silver, 5.86% lead and 4.82% zinc. About 300 metres SE from this working, a 3.0 metre wide sample taken from another working along a north-south trending, easterly dipping structure, assayed 146 g/t silver, 8.78% lead and 0.57% zinc.

Of interest, also, are two other sample sites located during reconnaissance exploration. The first one, about 300 metres south of the centre of the Ayawilca zone, yielded 55 g/t silver and highly anomalous lead over 8 metres, sampled obliquely across the bedding. Previous mapping has identified a NE-trending structure that passes through this site and projects towards some anomalous soil samples, a distance in excess of 400 metres. The other site, located about 1.3 km ENE from here, returned 64 g/t silver and highly anomalous lead and zinc over 15 metres width. This site is described as a “manto” in sandstone which hosts pyrite and iron oxides.

The Colquicocha zone is underlain mostly by sandstones and siltstones containing finely disseminated pyrite throughout. Other sulphide minerals have not yet been identified in the matrix of these rocks, but the highly anomalous soil sample results suggest they are there (galena, sphalerite). It is believed that this sequence of east-west structures could be a similar setting to the Zone 1 area just drilled, where faults served as conduits for reprecipitating and enriching the mineralization both along the faults and in intervening fractures.

The Company has now completed a grid sampling program and surface exploration to further delineate this new zone and samples are now at the laboritory in Lima. The Company is continuing a grid sampling program and surface exploration to further delineate these zones.

NI 43-101 Resource Calculation

In April 2008, the Company announced an independent NI43-101 report was completed by Mr. John Nebocat PEng. which determined an inferred silver resource of 20.3 million ounces silver and the following information is extracted from that report dated February 28, 2008.

This resource is based on the results of 12 diamond drill holes, 3 surface trenches and underground workings within 2 separate adits.  Silver mineralization is hosted by a faulted and fractured sandstone belonging to the Chimu Formation of the lower Cretaceous Goyllarisquisga Group. This sandstone host rock overlies a sedimentary breccia unit containing fluidized sulphides which in turn overlies the upper Triassic to lower Jurassic Pucurá Group limestone. The Pucurá limestone is host to the famous Cerro de Pasco mine located about 40 km to the southeast.

Polygonal resource blocks were constructed along section lines using the angular bisectors between adjacent drill holes and/or trenches and/or underground workings as resource block boundaries. Resource blocks were projected midway between adjacent sections (50m from each section) and not greater than 50m away from the outermost section lines and were projected not more than 50m past the outermost drill hole or underground working within a section. A 30 g/t Ag cut off and a density of 2.65 was used in determining this resource estimate. Calculations were performed using Interdex and CADD software.

A portion of the sandstone formation immediately north of and contiguous with the resource area has not been drill tested, and Mr. Nebocat has determined that there is a potential target of up to a further 2,000,000 tonnes of mineralization with a silver grade similar to that stated in the resource estimate. The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define this target at this time. It is uncertain that drilling will result in further discoveries in this area. The target referred to is based on follow up of currently untested known strike length and down dip potential of the host sandstone.

Mr. John Nebocat also says in his report, "At Colquipucro, high grade silver mineralization was mined from a series of parallel fault structures during early colonial Spanish time, but more extensive underground workings were located on these zones in the 19th and 20th centuries. Underground and surface sampling done by Tinka demonstrated that the fractured sandstone between adjacent fault zones also contained lower grade silver mineralization, indicating that a potential bulk tonnage silver deposit may exist. The Chimu Formation is known to host bulk tonnage gold deposits elsewhere in Peru, but this appears to be the only documented case of the Chimu hosting a bulk tonnage silver deposit.

Of considerable exploration interest is another zone identified about 2 km south of the main resource area. Here, a recently completed soil sampling grid has identified another significant target area (Zone 2/Ayawilca). Coincident Ag-Pb-Zn soil anomalies, overlying a series of parallel, east-west trending fault lineaments in sandstone, cover an area roughly three times the size of Zone 1.  A four metre wide rock sample from an altered zone next to one of these faults yielded trace Ag, 1,440 ppm Pb and 1,162 ppm Zn, and a grab sample from a gossanous clinker zone located about 50m northeast from here ran 129.5 ppm Ag, 2,093 ppm Pb and 1,794 ppm Zn."

Mr. Nebocat has recommended an extensive drilling program to further define the existing resource, to test the target north of the resource and to drill some exploration holes at the Zone2/Ayawilca anomaly.  A multi-phase work program over the next 14 months is estimated to cost approximately C$2,926,000.

Mr. John Nebocat is an independent qualified person pursuant to National Instrument 43-101, and is the consulting geologist for Tinka. A copy of this report is available on this website for viewing and also on www.sedar.com
 
As far as Tinka is aware, there are no environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other issues, other than what is commonly known and practiced in Peru, that could have a material affect on the mineral resources described in the report. Peru has an established mining history, and mining is generally supported in most parts of the country. This property has road access right to it, and the power line that supplies the Antamina mine, about 40km to the northwest, passes through the middle of the property and within 1km of the resource. As such, there are no perceivable impediments caused by mining, metallurgical and infrastructure problems that could have a detrimental affect to the resources described in the report.

Metallurgy

Initial metallurgical test work has produced positive results.  Highlights from this work include:

• Silver recovery ranged from 90 to 97% with cyanide consumptions of 3.5 to 8.0 kg/t after leaching for 72 hours; 
• Silver leaching kinetics was extremely fast for both composites; 
• Although reagent consumption was moderate to high, the leaching time was extremely rapid, suggesting further test work may allow cyanide consumption to be reduced with only a small loss in recoverable silver. 

Test work was undertaken by Plenge Laboratories in Lima, Peru, on two composite samples from the Colquipucro main mineralized zone ("Zone 1").  The samples were composited from 63 samples from two separate sections of pulps taken from diamond drill holes CDD6 and CDD13 that passed through Zone 1.  Tests included head grade analysis, gravity separation and cyanidation.  The samples were subjected to six conventional bottle roll techniques.  Sample head grades averaged 79.7 g/t Ag (CDD6) and 132.1 g/t Ag (CDD13).  Head grades for the metallurgical samples are in the same range as those of the recently calculated 43-101 inferred resource of 5.7 Mt at a grade of 111 g/t Ag (20.3 Moz silver) at Zone 1.

Structural Mapping

The Company has completed a detailed structural mapping and geological interpretation study of Zone 1 and the Ayawilca zone.

The interpretations and conclusions provided by the Company's independent geologists include:

• The structural setting and mineralization found at the Ayawilca zone has a direct correlation with the system found at Zone 1.
• The area, approximately 500m north-south by 200m east-west, defined as prospective for hosting bulk-tonnage silver mineralization at Ayawilca is sufficient for an exploration target equal to or greater than that established at Zone 1.  The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define this target at this time.  It is uncertain that drilling will result in further discoveries in this area.  The target referred to is based on follow-up of currently untested known strike length and down dip potential of the host sandstone.
• Ayawilca is believed to be higher in the Goyllar sandstone stratigraphy; hence, there may be potential for a thicker sequence of mineralization than at Zone 1.
• An 8-hole reverse circulation drill program, totalling not less than 1,600m, is recommended as a first phase test of the Ayawilca zone.   

 Ayalwilca Zone Geophysics

The Company has received a report from an independent geophysicist on an induced polarization (IP) survey undertaken on the Company's Colquipucro project.  The pole-dipole survey consisted of 8 lines totalling 14.1 km and is contiguous with the IP survey performed over Zone 1 in 2007.  The target of this survey was the yet-undrilled Ayawilca zone, located 1.5 km south of Zone 1.

The inversion model of the IP data has produced a target underlying Ayawilca zone that trends east-southeast for 600 metres and plunges gently to the east; this model fits the observed surface mineralization and pattern of faulting mapped east of Ayawilca. 

Midway between Zone 1 and Ayawilca sits a larger, locally stronger IP anomaly.  It has a near-surface expression and is possibly caused by formational pyrite in the sandstone; no workings are known to exist in this area.  

A modification to the existing 50 drill hole permit has now been received.  This will allow an additional 8 RC holes to test the Ayawilca zone and the Company is seeking a drill contractor to undertake this drill program as soon as possible.